- Revenue Growth Group revenue reached EUR 10 billion with 1.3% like-for-like growth, excluding hyperinflation.
- EBITDA Performance EBITDA hit EUR 1.5 billion (14.8% margin), driven by Core Services' 2.7% growth despite FX challenges.
- Free Cash Flow Generated EUR 901 million in free cash flow, with 42% returned to shareholders via dividends and buybacks.
- Future Forward Strategy Launched over 500 AI projects, targeting EUR 100 million efficiency savings by 2026 and strategic AI client wins.
- Leadership & Guidance New CEO Jorge Amar appointed; 2026 guidance forecasts 0-2% growth, 14.6% EBITDA margin, and EUR 4.50/share dividend increase.
Segmental Performance
Core Services showed stable growth momentum, with 2.7% reported growth, driven by the company's ability to adapt to the global environment and adverse FX conditions. Specialized Services, however, faced challenges, particularly with the non-renewal of a significant Visa contract. Despite these headwinds, the company delivered a good EBITDA margin, with a neutral impact in Specialized Services. The EBITDA margin was supported by a 70-basis-point gain from mix effects in Line Loss Services (LLS), offsetting the loss due to TLScontact.
Future Forward Initiative
TP's Future Forward initiative is gaining traction, with over 500 AI projects launched, targeting over EUR 100 million in efficiency savings in 2026. The company is driving change through internal AI, cost optimization, and organizational redesign. According to Jorge Amar, the incoming CEO, "65-66% of capacity is still in-house, leaving ample space for growth in outsourcing." This initiative is expected to drive growth and improve profitability.
Outlook and Valuation
TP expects a growth rate between 0% and 2% in 2026, with an EBITDA margin of 14.6% and net free cash flow between EUR 800 million and EUR 850 million. Analysts estimate next year's revenue growth at 1.7%. The company's valuation implies an existential trajectory, with a P/E Ratio of 6.04 and an EV/EBITDA of 4.04. The Dividend Yield stands at 8.16%, indicating an attractive return for income investors. The Net Debt / EBITDA ratio is below 2x, demonstrating a healthy balance sheet.
Guidance and Risks
The company's guidance assumes a EUR 1.20 dollar exchange rate and a limited impact from dollar depreciation. The Specialized Services margin is expected to improve further in 2026. However, the company faces risks, including a challenging start to the year, particularly in the U.S., and potential FX impacts. The gap between adjusted EBIT and FCF is largely due to the timing of working capital and tax payments. The new CEO is set to explore options for increased returns, including potential M&A, organic investment, and shareholder returns.